Income tax - Rental investment in the former “Denormandie law” (tax reduction)

Types of acquisitions

The tax reduction applies to the following dwellings:

• Old housing undergoing improvement work
• Premises converted into residential use.

The work must represent at least 25% the total cost of the operation.

Period of investment

The tax reduction concerns transactions carried out between March 28, 2019 and December 31, 2027.

Location of the accommodation

The dwelling must be located either in one of the municipalities concerned by the Denormandie scheme, or in a condominium in serious difficulty.

Housing can benefit from the tax reduction if it is located in one of the following municipalities :

• Municipalities with a significant need for habitat rehabilitation
• Municipalities in labeled areas Heart of town
• Municipalities having passed a Territorial Revitalization Operation Agreement (ORT).

To find out if a city falls under this scheme, you can use this simulator:

Check if your city falls under the "Denormandie" scheme

The tax reduction also applies to dwellings located in a condominium in serious difficulty.

The condominium in difficulty must be in one of the following situations:

• Placed under provisional administration
• Included within the scope of a reclassification of degraded condominiums (ORCOD), whether this operation is local or declared of national interest (ORCOD-IN).

Nature of the work to be carried out

You must do one of the following in the accommodation:

• Work improving the energy performance of housing 20% at least (30% at least for individual dwellings)
• At least 2 types of work among the boiler change, attic insulation, wall insulation, hot water production change, window insulation
• Creation of new living space (e.g. balcony, terrace or garage).

Find an RGE professional or architect

The work must be completed by December 31 of the 2nd^e year following acquisition.

Ceiling

The tax reduction shall be calculated taking into account the following:

• Acquisition cost of the dwelling capped at €300,000
• Ceiling of €5,500 per m² of living space.

You must also consider the overall cap on tax benefits.

Rate of tax reduction

The rate varies depending on the duration of the lease commitment.